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Insurance agent services

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insurance agent services are chargeable under reverse charge but agents are employees of the company. so why it is not exempted
Replies (4)

I will have to applaud you for such a different angle of thinking, quite frankly i am stunned by your question, so hope someone clarifies your doubt.

Dear Raman, Insurance Agents, as the name suggests, are the agents of the insurance companies and they are never EMPLOYEE of the company. Agents don't get salary from the company but they receive commission based on their performances. So, their service is taxable under reverse charge and the company is liable to pay service tax thereon.

Yaaa now got it thanks mr manoj agarwal and thanks for ur appraisal karthik v kulkarni
Thanks for clarifying the doubt


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